Concerns continue to be raised on the massive loss incurred by the Fiji Rugby Union last year and how Fiji rugby can move into making a profit.

The net loss was $606,647 in 2012 compared to $177,748 in 2011.

In his report, FRU Chief Executive Officer, Manasa Baravilala said the loss is mainly attributed to lack of major sponsors for the Flying Fijians, Fiji Warriors, Fiji Under 20 and Fijiana for preparation and participation in the Pacific Nations Cup, Northern Hemisphere tour, Pacific Rugby Cup, Junior World Championships and Women's 7s qualifiers.  

Baravilala said as reported in 2010, the World Cup lottery recorded a loss of $220,566 and payment of the prize pool of $300,000 is having a serious impact on FRU's finances.

The directors report in the 2012 Annual Report of the FRU states that the union is still in the process of refunding lottery ticket money and identifying and finalizing the new lottery winners as agreed to with the Commerce Commission.

The directors also say that the FRU is yet to comply with the condition to provide special audited reports for the Lottery Account to the Office of the Solicitor General.

This is expected to be completed once the accounting records and source documents relating to the Lottery Account are returned by the Commerce Commission and the special audit is completed.

According to the Annual Report, FRU sponsorships last year totalled $2.81 million compared to $3.57 million in 2011.

The grant from IRB was $2.64 million compared to $3.54 million in 2011.

The biggest cash sponsor is Digicel Fiji which gave $1.4 million last year compared to $1.3 million in 2011.

It was earlier stated that Digicel's sponsorship is coming to an end this year and discussions are currently underway on the extension of the sponsorship.

Meanwhile Bank of the South Pacific discontinued its $239,000 sponsorship last year.

This amount was provided in 2011 for the Farebrother Sullivan Trophy.    

Story by: Vijay Narayan